Lithium Americas (LAC) said late Wednesday it is set to receive a $250 million investment from fund entities managed by Orion Resource Partners for the development and construction of the phase 1 of the Thacker Pass lithium project in Humboldt County, Nevada.
Orion has committed to purchase $195 million of senior unsecured convertible notes and enter into an agreement to pay Lithium Americas $25 million in exchange for payments related to the minerals processed and gross revenue generated by the project. Orion has also committed to buy an additional $30 million in the notes within two years.
Lithium Americas said the investment is expected to close the week of March 10, while completion of phase 1 is targeted for late 2027.
The company expects the initial $220 million investment to satisfy all remaining requirements from both the US Department of Energy and General Motors (GM) to satisfy all remaining equity capital fundraising requirements under a previously announced $2.26 billion loan from the DOE.
Lithium Americas said Orion has agreed to assess the potential to support up to $500 million of financing for the construction and development of the project's phase 2.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.